AI could transform the energy sector
The International Energy Agency (IEA) projects AI will double electricity demand from data centres by 2030 to ~945TWh.
AI will be the most significant driver of the increase to 2030, with electricity demand from AI-optimised data centres projected to more than quadruple by 2030.
However, new technology could also unlock opportunities to cut costs, ehance competitiveness and reduce emissions.
IEA Executive Director Fatih Birol says, 'Global electricity demand from data centres is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today.
'The effects will be particularly strong in some countries. For example, in the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.'
The Energy and AI report finds that, driven by AI-usage, the US economy is due to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminium, steel, cement and chemicals.
It states that data centres in advances economies are predicted to drive more than 20% of growth in electricity demand between now and 2030.
The report emphasises the significant uncertainties that remain from the macroeconomic outlook to how quickly AI will be adopted.
It also notes questions over how capable and productive AI will become, how fast efficiency improvements will occur, and whether bottlenecks in the energy sector can be resolved.
The Agency says the report provides first-of-its-kind estimates of demand from data centres for critical minerals, whose global supply is today highly concentrated.
AI could intensify some energy security strains while helping to address others, according to the report.
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